New Delhi [India]: There is unlikely to be any immediate reduction in retail fuel prices, as oil marketing companies (OMCs) are yet to receive crude oil at the lower international prices, hinted Arvinder Singh Sahney, Chairman, Chairman and Managing Director of Indian Oil Corporation Limited, on Tuesday.
Speaking to reporters in New Delhi on the sidelines of an event organized by the Global Biofuels Alliance, Sahney said the OMCs are currently processing crude purchased earlier at higher prices and have not yet received fresh cargoes procured at the recent lower rates.
"Have we received the raw fuel after the reduction of prices?" he said in response to the questions about anticipation of a reduction in prices, indicating no immediate respite.
Going further, Sahney expected that the meaningful conclusion of talks in Doha between the US and Iran may help the supplies.
In the morning around 9:33 AM today, the crude oil futures, September Brent oil futures, were at $73.66, down by 0.34 percent. The August crude oil futures on WTI (West Texas Intermediate) were also down by 0.48% at $70.41. The WTI Brent briefly touched an intraday peak of about $126 a barrel during the Iran-US war.
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To stabilize prices of petrol, diesel, and aviation turbine fuel (ATF), the center on June 16 increased the export tax.
The Department of Revenue raised the export duty on diesel by Rs 14 per litre, while the duty on ATF exports has been increased by Rs 12.5 per litre.
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The disruption caused by the closure of the Strait of Hormuz following the US attack on Iran has significantly impacted Indian OMCs, as they are currently absorbing losses of around Rs 550 crore per day on the sale of petrol, diesel, and domestic Liquid Petroleum Gas (LPG), said the Ministry of Petroleum earlier last month.
So far since the start of the Iran war, the OMCs have made four hikes in the prices of gasoline and diesel.
It is interesting to note that India’s major state-run Oil Marketing Companies (OMCs) posted a cumulative standalone net profit of approximately Rs 19,470 crore in the fourth quarter of FY26 (January–March 2026). This represented a roughly 40% jump compared to the same period in the previous year.
India is the world’s fourth largest refiner, with an installed capacity of 258.1 million tonnes per annum across 22 operational refineries.
Domestic consumption was 243.2 million tonnes in FY 2025-26; petroleum product exports were 61.5 million tonnes in the same year, making India one of the largest exporters of refined products globally. There is no supply issue of any kind, the ministry added.
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Ends.
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